Cash on horizon, Imperium faces disgruntled former exec

The former managing director of trading and commodities at Imperium Renewables is alleging that the biodiesel company unlawfully transferred trades so that he did not receive proper compensation. The dispute is part of a compensation lawsuit that Kenneth Orr, who worked at Imperium from January 2007 to January 2008, filed against the company in King County Superior Court in February.

Orr is asking for 10 percent of the money he saved Imperium through his commodity trades, arguing that he saved the company more than $58 million. “I held up my end of our bargain, but Imperium has refused to uphold its end,” said Orr in a press release issued this morning.

I am also hearing that Imperium is nearing completion of a venture round, one that will provide some breathing room for the struggling biodiesel producer.

The company, which scored $214 million last year, one of the largest venture rounds in Washington state history, has run into headwinds lately.

Chief Executive Martin Tobias resigned last December, a departure that was followed by the postponement of a $345 million initial public offering and layoffs.

Furthermore, the biodiesel sector — once the darling of investors — has run into its own issues related to the debate over food versus fuel as well as the economic vitality of alternative fuel companies.

Imperium officials were not immediately available to comment.

Michael Subit, who is representing Orr, said that Imperium made trades to “prevent and hinder” the “very substantial compensation that Mr. Orr is due.”

While Orr is asking for 10 percent of $58 million, Subit said the figure could be substantially higher. The attorney plans to hire a financial expert to investigate the matter.